Research On The Impairment Of Goodwill Of Listed Companies

In 2014,China's M & A market began to be active.The number of transactions and the transaction value of listed companies' M & A and restructuring increased significantly,high-premium mergers and acquisitions occurred frequently,and the amount of goodwill of listed companies continued to increase.Cases of large-scale impairment of goodwill began to appear in 2016,and numerous cases of listed companies incurring huge losses due to impairment of goodwill in 2018.High goodwill is accompanied by high risks.Once the profitability of the target company is not up to expectations,the subsequent impairment of goodwill will offset the current performance and bring irreparable losses to the company.In recent years,China's regulatory authorities have also begun to strengthen the supervision of goodwill,which shows that the problem of goodwill in China is prominent.This article takes goodwill impairment as the research object.First,it sorts out previous studies on goodwill,including the nature of goodwill,subsequent measurement of goodwill,and the relationship between goodwill impairment and earnings management.Secondly,it lists the commission Agency theory and stakeholder theory,asset impairment related theories,asset evaluation methods used in the process of M & A valuation,and the provisions of goodwillrelated accounting standards are used as the theoretical basis of this article.Based on the research of scholars,using statistical analysis and case analysis methods,firstly analyze the goodwill and impairment of goodwill of China's A-share listed companies by year and industry,and then accrue in 2018 in China Tianshen Entertainment,which ranked first in the amount of goodwill impairment,took the case study as an example and conducted a detailed analysis of the issue of goodwill.The study found that during the initial recognition stage of goodwill,there are factors such as the income method assessment,performance commitments,and unreasonable performance predictions that have caused the company's valuation to be too high,which has led to a falsely high level of goodwill.It is difficult for parties to fulfill performance commitments,and there are problems such as unreasonable impairment judgment standards,imperfect information disclosure,and obvious motivation for earnings management.The innovation of this article is as follows: first,through statistical analysis by industry,it is found that the goodwill of the light-asset industry led by the media industry in China has a large amount of goodwill and high risk of goodwill impairment;A typical case,Tianshen Entertainment,is a research object.It can reveal the goodwill problems existing in enterprises from point to face,and reflects similar goodwill problems existing in most listed companies in China.According to the existing problems,it puts forward suggestions to protect the personal interests of investors and provide reference for regulating the measurement of goodwill and improving the deficiencies in the development of goodwill accounting in China.